What is the Second Chance Law and who can take advantage of it
Posted on 8/2/2022
The Second Chance Law is designed for people who cannot cope with their debts and find it impossible to rebuild their lives after their business fails. It allows you to renegotiate those debts and even start from scratch, since it also exonerates them. It is a law that protects the entrepreneur and ensures economic development and employment promotion. In fact, it is similar to the procedure of the Bankruptcy Law for companies.
Of course, the requirements and the processing are demanding and the process lasts at least five years. For this reason, and despite the fact that it has been in force in Spain since 2015 thanks to Royal Decree Law 1/2015, until now 'only' some 10,000 people have been able to take advantage of this law, although the numerous specialized law firms that work with the Second Law Opportunity -many exclusively- coincide in ensuring that applications have increased significantly after the outbreak of covid-19, and there are hundreds of procedures pending assessment.